Confusion on a mortgage product.

[Benjamin Z. Pickens]

I am shopping around for a loan on my first investment property in SC. I managed to find a lender with a decent product (SAFE Federal Credit Union). However, they only loan 80% of the purchase price for investment properties. Maybe I am missing something? If the purchase price of a home is $100,000 and needs $20,000 in rehab, they will only lend me $80,000? First issue is, it doesn't even cover the entire price of the home. Secondly, I'm left paying rehab costs out of pocket. Aside from that they seem to offer decent terms with 20% down at 7% interest for 15 years. I just feel like they may be losing out on a lot of business due to the 80% rule. Has anyone else used this lender? Perhaps I misunderstood the 80% rule?